Democrats Pitch Plan to Avert Showdown on Delayed Payments

New Jersey Democrats went to Gov. Chris Christie's chief of staff last week to pitch a proposal to avert a budget showdown over the Republican's plan to cut more than $2 billion in public-pension system payments, according to people familiar with the negotiations.

The Democratic lawmakers were upset that Mr. Christie—to close a sudden billion-dollar budget shortfall in May—proposed a $696 million pension payment this fiscal year,...